STOXX 600 index falls 0.7
Regional bank stocks drop 1.2
ASM falls after drop in Q1 orders
Temenos jumps on Q1 earnings beat

April 26 Reuters European shares fell on Wednesday and were set for their biggest oneday drop in a month, as banking sector worries overshadowed initial euphoria from solid earnings by tech giants Microsoft and Alphabet.

The panEuropean STOXX 600 index fell 0.7, as regional banking stocks dropped 1.2.

Banking sector concerns revived after shares in U.S. lender First Republic Bank slid to a record low on Tuesday, closing down nearly 50, as it disclosed a morethan100 billion plunge in deposits in the last quarter.

The problems at First Republic Bank have undoubtedly reopened the sores from March, as investors fret about the financial system again, said Russ Mould, investment director at AJ Bell.

While big U.S. banks largely impressed at the start of this earnings season, numbers from regional lenders across the pond look set to be under heavy scrutiny in the coming days and weeks.

Boosting telecom shares, Telia Company AB rose 5.6 after the Swedish telecom operator posted betterthanexpected EBITDA in the first quarter and agreed to sell its Danish operations.

Earnings from Microsoft Corp and Google39;s parent Alphabet Inc beat expectations, but recessionary worries in the world39;s largest economy kept investor sentiment fragile.

Shares of Swiss banking software company Temenos AG jumped 10.2 after it reported firstquarter earnings above…